Most small business owners, especially solo entrepreneurs, do not even know the loan officer or business relationship manager’s name where they bank. However, building a relationship with the loan officer is one of the smartest things you should do—before you have a pressing need for funding. Banks thrive on their services to local 0wners—both brick-and-mortar and online business owners–but are equally eager to know business owners and build relationships with them.

From a loan officer and commercial relationship manager’s perspective, they need a pipeline of potential commercial borrowers. Loan officers are skilled at advising and evaluating enterprises. If you do not know your loan officer and never talked to them, WVF highly recommends making an appointment to introduce yourself and your business BEFORE you need funding. This is how they begin to form an assessment of your character, creditworthiness, and the health of your business should you ever need funding.

How to prepare for your meeting:

  • Before the actual meeting, send them your updated business. plan, including a section on marketing.
  • Practice your elevator pitch.
  • Gather your financial documents: cash flow statement, profit/loss. T statement, and balance sheet. These critical documents should be updated at least monthly.
  • Let the loan officer know ahead of time if your accountant will accompany you.
  • Be on time or cancel in a timely manner. Obviously, this shows you value their time; you are building your character.
  • Prepare questions of your own. A loan officer is not an expert on all industries. At the very least, they can suggest contacts and/or networking opportunities they have access to.
  • Propose that you meet quarterly to provide updates on your business—the good, the bad, and the ugly. A key to building a good relationship with your banking “partner” is transparency.

What if you need funding at the time of the first meeting?

  • Follow all the recommendations above.
  • Ask for any online or paper application ahead of the meeting.
  • Typically, lenders require that you have been in business more than two years.
  • Know your credit score as well as all outstanding debt.
  • Be ready to describe exactly why you need funding. Lenders are trying to match your needs with their available products.
  • Know your assets (collateral) so the lender knows they can list them on your application. Examples of assets are vehicles, real estate, equipment, and
  • 401Ks/savings account.
  • Bring two to three business and personal tax returns and three months of bank statements, both business and personal.
  • A list of current customers/clients is a plus.